Domestic Fuel

Ethanol is good for taking harmful particles out of automobile emissions, but a group committed to cleaner air is worried that gasoline makers might just end up putting more particulates in the blendstock.

“The [ultra-fine particulates] profile of the ethanol is very, very consistent,” but Greg Krissek, Director of Government Affairs for ICM, part of the Urban Air Initiative, told Joanna during the recent Iowa Renewable Fuels Association (IRFA) Renewable Fuels Summit that as ethanol blends get higher, gasoline makers are increasing the amount of particulate-forming ingredients on their end.

But Greg is still optimistic that higher ethanol blends will be used in the future. “I think there are very positive discussions with automakers about how to use mid-level blends. What we don’t want to happen is the unintended consequence down the road of what happens to that gasoline blendstock.”

You can find out more on the Urban Air Initiative’s website.

Listen to Joanna’s interview with Greg here: Greg Krissek

View the IRFA Renewable Fuels Summit Photo Album.

The first Navy plant in the Mid-Atlantic region to use B20 is located in St. Julien’s Creek Annex in Portsmouth, Virginia. The biodiesel blend will provide steam to heat 16 office buildings and 13 warehouses. Over the course of the winter, 235,000 gallons of B20 are expected to be used to create the heat.

Previously the plant used traditional, petroleum-based fuel oil. According to the National Biodiesel Board, the B20 blend is priced competitively with the petroleum based diesel, and will not increase the Navy’s costs to heat the base, while helping to meet the Secretary of the Navy’s goals for greater energy security.

Deputy Assistant Secretary of the Navy (Energy) Tom Hicks recently experienced a first-hand look at how biodiesel is being used to heat a Navy base. “The Navy uses an annual average of 30 million barrels of fuel per year which equates to about $4 to $5 billion of fuel cost,” Hicks said during the tour. Because of this, it is important to explore additional and alternative sources like we see here today at St. Julien’s Creek.”

Hicks continued, “This is a perfect example of what the Navy is trying to do by using B20, a 20 percent biodiesel, 80 percent conventional fuel to run the steam plant from domestic sources that are competitively priced.”

Propel Fuels is believed to be the first in the nation to sell consumers algae-based fuel at the pump compliments of Solazyme Inc. The two companies have joined together to offer Solazyme’s algae-based Soladiesel®_BD in the Bay Area. The month long pilot program provides the biofuels industry the first opportunity to test consumer response to the advanced biofuel.

According to a statement from Propel, Solazyme’s high quality algae-based Soladiesel_BD meets or exceeds ASTM quality specifications and has shown performance enhancements including cold temperature operating performance. The fuel is compatible with existing diesel engines and Propel is guaranteeing the fuel’s performance. The algae-based fuel will be sold at the same price as conventional diesel fuels and will be available exclusively at Propel’s Clean Fuel Points in Redwood City, San Jose (N. First St.), Berkeley, and Oakland.

“Propel is committed to providing our customers with access to the highest quality, most sustainable, domestically produced fuels, so we’re proud to introduce the next generation of fuels to the retail market,” said Matt Horton, CEO of Propel Fuels. “Propel’s growing station network provides the critical link between these future fuels and today’s consumer fuel tanks, giving our customers a chance to make history.”

Solazyme’s technology platform converts plant sugars into oils in a few days. Testing undertaken by the National Renewable Energy Laboratory (NREL) shows that, in a 20 percent blend, Soladiesel_BD significantly outperforms ultra-low sulfur diesel in total hydrocarbons (THC), carbon monoxide (CO) and particulate matter tailpipe emissions. This includes an approximate 30 percent reduction in particulates, a 20 percent reduction in CO and an approximate 10 percent reduction in THC.

“Solazyme’s revolutionary algae-based technology platform has supplied our development partners and customers with advanced biofuels that meet or exceed some of the world’s most stringent fuels specifications and requirements, “ added Bob Ames, VP of Fuels, Solazyme.  “We’ve successfully demonstrated our land-based fuels in fleet vehicles and corporate busses, and are excited about this pilot program with Propel because it enables us to make these fuels available to the public.”

The Iowa Renewable Fuels Association (IRFA) is asking all auto makers to recommend the use of 15% ethanol blended fuel (E15) for use in new model vehicles.

IRFA has sent letters to the heads of 12 auto manufacturers asking them to follow the trend set by Ford Motor Company and General Motors and endorse the use of E15 as approved by the Environmental Protection Agency as an option for owners of cars and light duty trucks newer than 2001.

The letters stated, “It’s now been just over two years since the U.S. EPA authorized the use of E15 in new cars and light duty trucks sold in the U.S. Recent announcements by General Motors and Ford Motor Company that E15 is recommended for use in their new vehicles clearly demonstrates that ample time has passed for automakers to react to the EPA’s announcement and offer vehicles for sale in the U.S. that give consumers the fueling choice they deserve.”

The letters continued by asking if E15 is a recommended fuel for the company’s model year 2013 cars and light duty trucks sold in the U.S. If E15 is not a recommended for use in the company’s model year 2013 cars and light duty trucks, the IRFA also asked, “Given the two years to research and prepare for the transition to E15, please explain why your company chose not to align its products with all of the legal fuel options sold in the U.S.?”

The letters were sent to the heads of BMW of North America, Chrysler Group, American Honda Motor Company, Hyundai Motors America, Kia Motors America, Mazda Motors of America, Mercedes-Benz USA, Nissan North America, Saab Cars North America, Toyota North America, Volkswagen Group of America, and Volvo Group North America.

Professor of Agricultural Economics at the University of Nebraska/Lincoln, Dr. Bruce Johnson, will be addressing the attendees of the Nebraska Ethanol Board (NEB) meeting tomorrow, October 30, 2012 at 10:00 am CDT at the University of Nebraska East Campus Union in Lincoln. He will be discussing the recently released “2010 Economic Impact of the Nebraska Agricultural Production Complex.” The report focuses on the state’s industries involved in growing, processing and transporting agricultural products, which account for nearly one quarter of Nebraska’s total economy. In addition, Dr. Johnson will address the role of the state’s ethanol industry and prospects for future agricultural growth.

According to statements from NEB, the production and use of ethanol strengthens the state’s economy while lowering fuel costs. Ethanol blended fuels are projected to save Nebraska consumers more than $70 million during 2012. Francisco Blanch, a commodities expert for Merrill Lynch, said that biofuels, like ethanol, lower gas prices by at least 15 percent on a nationwide basis.

“Those energy savings are retained in the domestic economy,” said Steve Hanson, Nebraska Ethanol Board chairman. “The high price of oil and gas is driving up the cost of nearly all consumer products but the ethanol industry is helping to keep the Nebraska economy strong amidst nationwide inflation.”

Phil Lampert, former director of the National Ethanol Vehicle Coalition, will also speak at the Nebraska Ethanol Board meeting. Lampert is nationally recognized for his work to expand the use of E85 and other higher percentage ethanol blends. Lampert will provide an overview of ethanol flex fuel infrastructure development.

State corn associations across the country are working to bring more choice for consumers at the pump through the use of higher blends of ethanol, such as E15. Several programs are in place to help retailers install the infrastructure needed for consumers to take advantage of EPA’s decision to allow E15 to be used in vehicles 2001 and newer. In addition, the groups are working to install flex fuel pumps that dispense mid-level blends of ethanol such as E20 and E30 as well as E85, blends that can only be used in flex-fuel vehicles.

Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota all have efforts to increase the use of higher ethanol blends in their respective states by helping fund the installation of the necessary fuel pumps. From programs that completely support the installation of E85 pumps for retailers looking to convert multiple locations to programs that help cover the cost of signage highlighting ethanol options.

Today there are around 162,000 retail stations nationwide; yet, only 3,000 offer E85 and significantly less offer E15. But for most retailers who were early adopters of ethanol blends, they find a financial advantage to selling the higher ethanol blends in increased sales.

In addition to the various state programs, there are also two additional campaigns, the American Ethanol partnership with NASCAR® and the Blend Your Own program, to help increase infrastructure, awareness and adoption of higher ethanol blends. Retailers looking for more information on aid for the installation of infrastructure for higher blends of ethanol, visit the Blend Your Own Ethanol website.

In honor of the National Alternative Fuel Vehicle Day Odyssey, Farmers Union Oil of Southern Valley Cenex located in Wahpeton, North Dakota will be discounting ethanol fuel blends. On Friday, October 26, 2012, E85 will be discounted 85 cents per gallon, E30 will be discounted 30 cents per gallon and E20 will be discounted 20 cents per gallon. Odyssey Day is a biennial event that promotes the use of alternative fueled vehicles and the ethanol blends are only for use in flex-fuel vehicles (FFVs.).

The promotion will begin at noon and end at 3:00 pm. The retail station is located at 2019 9th Street North, Wahpeton, North Dakota.

Supporters of the Wahpeton event include the Farmers Union Oil of Southern Valley, National Alternative Fuels Training Consortium, North Dakota Corn Council, North Dakota Ethanol Council, North Dakota Ethanol Producers Association, North Dakota Clean Cities and the American Lung Association in North Dakota.

In response to strong sales of E15 in areas where the ethanol blend is offered, Ford Motor Company and General Motors (GM) announced their recommendations for use of E15 in their new vehicles. GM added the recommendation of E15 for its 2012 and newer vehicles, while Ford recommends E15 for its 2013 and newer vehicles.

In response, Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw said, “The IRFA wants to extend our most sincere thank you to GM and Ford for recommending the use of E15 in new vehicles. I believe Iowa consumers will take notice of GM and Ford’s leadership. This is an important step forward for E15. Thirty years ago, auto recognition of E10 began much the same way. First one company, then others followed. First for new cars, then for the legacy fleet. The pressure is now on other auto manufacturers to follow suit or explain why they offer substandard equipment.”

Retailers, who must first register with the EPA before legally selling E15, began to offer the higher ethanol blend quickly upon final approval for E15 for all 2001 and newer vehicles by the Environmental Protection Agency (EPA). The first retailer in the country to sell E15 was in Kansas and retailers in Iowa quickly followed suit. Last month, Linn Co-op Oil Company in Marion, Iowa became the first retailer in the state to offer E15. Several other Iowa retailers are in various stages of moving to offer E15.

E15 sales in Iowa are proving to be strong right out of the pump. This may be a poor metaphor, but the good news is that Linn Co-op Oil Company, the first retailer to officially sell E15 in Iowa, has seen sales soar to more than 30 percent of the day’s sales after an open house event on Friday, September 21, 2012. The ethanol fuel blend is the most tested fuel blend in the history of the U.S. and is approved for drivers of owning a 2001 or new vehicle, SUV or light-duty truck.

“Friday’s open house event at Linn Co-op proved to be a great success,” said Lucy Norton, Iowa Renewable Fuels Association Managing Director. “Attendees showed a deep interest in E15, specifically asking for the fuel and provided a large uptick in E15 sales. Iowa motorists are excited to have another high-octane, low-cost ethanol option that supports local jobs and contributes to the state’s economy.”

As part of the introduction of E15, Linn Co-op held an open house on Friday, September 21, from 8 a.m. to 5 p.m. with lunch served from 11 a.m. to 1 p.m. E15 customers received a 15 cent discount on each gallon of E15 purchased.

To introduce E15 to Marion residents, the IRFA, Iowa Corn and the Iowa Power Fund Community Grant Program are sponsoring a media campaign that includes radio and print ads, billboards and direct mail. The campaign will run throughout September. A similar campaign is available to any Iowa retailer who offers E15 for 2001 and newer vehicle owners, says Norton. Retailers preparing to offer E15 in the future are urged to contact the IRFA for promotional assistance.

“E15 is bringing in many new customers to Linn Co-op,” added Jim Becthold, Service Manager for Linn Co-op Oil Company. “During our open house event, I saw countless new faces from all over the county. Also, a great deal of our customers specifically asked for E15 and Friday’s sales reflected that.”

The Kansas Association of Ethanol Processors (KAEP) had a great showing during the Kansas State Fair last week. Positive ethanol messages were heard by thousands of attendees through educational materials, displays and videos. The state fair opened with a KAEP sponsorship, allowing the association to greet attendees and drive traffic directly to the KAEP booth. Once there, attendees had a chance to win a Kwik Shop fuel gift card.

In other Kansas news, the Kansas State University football sponsorship is in full swing. Last weekend, several KAEP members, staff and ag partners attended a tailgating event in Manhattan, Kansas prior to kickoff.  Ethanol advocates, including Greg Krissek, with Wichita-based ICM, was on hand to network with fuel retailers (did you know Kansas is the leading state on E15 sales with seven retail stations now selling the ethanol blend?) as well as lawmakers such as U.S. Senator Jerry Moran, about the benefits of ethanol.

The tailgating event is just one part of a season-long Bill Snyder radio campaign promoting ethanol. Radio commercials are airing on KSU’s 33-station network during all home football games as well as during the Bill Snyder radio call-in shows.

There are now seven retail stations in Kansas that offer E15 (15 percent ethanol and 85 percent gasoline). Several of the new stations are located in Olathe, Kansas, the first in a major metropolitan area. More stations are expected to open in the state within the next few weeks.

The new E15 stations are:

397 S. Parker St. (Intersection of K-7 & Santa Fe)
Olathe, KS

15310 S. Highway 169 (Intersection of I-35 & HWY 169)
Olathe, KS

1005 N. Pearl
Paola, KS

1415 W. 6th St.
Lawrence, KS

900 S. Iowa
Lawrence, KS

“When the last hurdle fell, the rollout of E15 picked up steam. Momentum is growing.  We are hearing from retailers in Kansas, Illinois, Iowa, South Dakota, Nebraska and other states eager to start offering consumers a new greener, more domestic choice at the pump,” said Robert White, Director of Market Development for the Renewable Fuels Association (RFA).

Earlier this week, the first station in Iowa began selling E15 in Marion, Iowa. Those retailers interested in selling E15 should download a free copy of the E15 Retailer Handbook.

A new blender pump is opening today in Cresco, Iowa. Twenty-nine local investors applied and were approved for a Resource Enhancement and Protection grant (REAP). They group also received Iowa Infrastructure funding to aid with the costs of installation. The FAST STOP flex-fuel station is located at 22268 Highway 9 West, Cresco, Iowa.

During a grand opening event today from 10:00 am to 2:00 pm, the FAST STOP station offered discounts on all ethanol blends, E15, E30 and E85. To my knowledge, this is the first station in Iowa to sell E15 after it became a legal fuel last month.  In addition to ethanol, three blends of biodiesel, B2 and B10 and off road B5 are being sold. The biodiesel is GROWMARK’S Dieselex Gold premium fuel.

Several industry representatives were on hand during the event to help celebrate with FAST STOP. Groups included GROWMARK, AgVantage FS, Iowa Renewable Fuels Association and Iowa Corn Growers Association.

Specialty Equipment Market Association (SEMA), has slammed ethanol saying it opposes the use of E15 based on scientific evidence that it causes corrosion with incompatible parts. They are one of many organizations that have brought a lawsuit against the use of E15 that also included manufacturers of cars, boats and power equipment. The organization says ethanol increases water formation that can create formic acid and corrode metals plastics and rubber.

The court has ruled in favor of E15 and now SEMA is spearheading a campaign targeted at U.S. Congress calling for them to enact legislation to ban the sale of E15.

In response, Bobby Likis, who is best known for his national radio program Car Clinic, has come out in support of ethanol (scroll down to see his response) the most researched fuel in the history of America. Likis writes that it is as if “…SEMA is more interested in sustaining old-think…outdated technologies” and “continued dependence on foreign oil.”

He continues to say that old car parts can be updated and people are smart enough to know that E15 is only approved for cars manufactured after 2001. He also put out a call to action asking consumers to let their representative know they support choice at the pump and to defeat federal legislation (HR 3199) that would ban the sale of E15.

Nebraska corn growers are on a mission to get more blender pumps installed in their state, especially in the larger cities.

Kim Clark, director of biofuels development for the Nebraska Corn Board, gave an update at the American Coalition for Ethanol conference on what they are doing to help get more blender pumps out in the state. “The corn board feels blender pumps are really important, especially for the state of Nebraska, since we are the number two producer of ethanol,” she said, noting that they set aside $750,000 this year to help promote installation of pumps. There are nearly 20 in the state now and about 30 new pumps are expected to be installed within the next year.

One of their challenges is getting into the larger cities of Nebraska, like Omaha, where there are currently no blender pumps available. “With the new grant program of $40,000 max per location, that has gotten a lot more retailers interested,” said Clark.

Find out more about the program on the Nebraska Corn Board website.

Listen to an interview with Clark from ACE here: NE Corn Board's Kim Clark

Drivers who live and travel through Ottawa, Kansas now have access to E15. The Zarco 66 station located at 2518 E. Logan (intersection of I-35 & HWY 68) has become the second retail gas station to offer E15 in the U.S. Earlier this summer, the Environmental Protection Agency (EPA) gave final approval for the sale of E15 and customers are already showing great support for the higher blend of ethanol. On July 8, 2012 Zarco 66 began offering E15 to drivers in Lawrence, Kansas and the fuel sales are hitting high speeds.

“We are excited to add a high octane renewable fuel choice for our customers on the go in Ottawa, Kansas as we will continue to reduce our dependency on foreign oil through the use of renewable energy sources,” said Scott Zaremba, owner of Zarco 66 stations.

While ethanol has many advantages, one is that it has the ability to help motorists save money at the pump. According to an updated study authored by professors at the University of Wisconsin and Iowa State University, ethanol savings in the Midwest in 2011 were $1.69 per gallon while average savings across the county was $1.09 per gallon.

“American consumers are looking for a choice when it comes to fueling their vehicles, and they now have one more domestic, renewable fuel option with E15 becoming more commercially available,” said Renewable Fuels Association RFA) President and CEO Bob Dinneen. “Ethanol continues to help consumers during these difficult economic times by lowering prices at the pump and supporting more than 400,000 jobs across the country that can’t be outsourced.”

RFA is working with retailers as well as automakers and consumers to ensure E15 is used properly. Vehicles and light duty trucks manufactured after 2001 can take advantage of E15.

The association, along with the American Coalition for Ethanol (ACE) have been working together through their BYO Ethanol program to help interested gas retailers install pumps to sell higher blends of ethanol including E15 and E85. Those interested retailers can review the E15 Retailer Handbook for free to learn more about how to make additional revenue through the sale of E15.